Take me to the text Burroughs Corporation (with a December 31 year-end) issued $413,000, 8% bonds due in 8 years on May 1, 2016. Interest is paid semi-annually on November 1 and May 1 of each year. On the issuance date, the market rate of interest was 5%, resulting in a price of $493,865 for these bonds. Note: The premium/discount is amortized using the effective interest method. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. For transactions with more than one debit or credit, enter the accounts in alphabetical order. a) Is this bond issued at a discount or at a premium?: Prepare the journal entry on May 1, 2016, to issue the bonds. Date Account Title and Explanation Debit Credit May 1 Issuance of bonds b) Prepare the journal entry on November 1, 2016, to record the first interest payment and the amortization of the premium/discount. Date Account Title and Explanation Debit Credit Nov 1 Payment of interest and amortization c) Prepare the adjusting entry on December 31, 2016. Date Account Title and Explanation Debit Credit Dec 31 Accrual of interest on bonds d) Show the balance sheet presentation of Bonds Payable and related accounts as at December 31, 2016. Bonds Payable, 8%, Due May 1, 2023 $ Add premium or subtract discount Total Non-Current Liabilities Check